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tv   The Exchange  CNBC  August 10, 2021 1:00pm-2:00pm EDT

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liverpool football club and i think that's a great company to own long term. sono. >> josh brown, what about you? >> just congratulations to shake shack on an excellent comeback quarter. same-store sales up 52%. obviously versus the pandemic. but digital sales doing good stuff. >> thanks, everybody "the exchange" starts now. thank you so much, scott i'm eamon javers in again for kelly evans here on cnbc headquarters and here's what's ahead. the infrastructure bill finally passing in the senate. if a trillion dollars is going to be spent here, which companies are going to get a piece of all that money? we'll get some stock picks and talk to senator angus king about what's going to get built in his state and around the country. plus you don't know what you've got until you lose it a foam shortage is tying up production of furniture. that's foam not like starbucks
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foam but foam that goes into furniture and stuffing of all kinds. and in rapid fire, domino's versus delivery, work-from-home pay cut and buy now, pay for it later. let's start with the breaking news of the past hour new york governor andrew cuomo announcing his resignation, and contessa brewer has all the details for us contessa, over to you. >> hi there, eamon cuomo's resignation will take effect in two weeks to allow for this transition of power but the announcement was an abrupt about-face. his personal attorney, rita glavin, was walking her way through a report, spending more than 45 minutes. this report from the attorney general had accused governor andrew cuomo of sexual harassment, of groping, of bullying, toxic workplace culture, and the complaints of 11 women of varying degrees of seriousness. here the attorney gavin explained, excused and set aside those complaints the new york governor then came
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after her, followed up he apologized. he says for sure he offended all 11 women but he says, look, it was generation and cultural norms that shifted without him knowing it of and just when you thought he was digging in for the long defense, he turned around and announced his resignation. here's his rationale >> the state assembly yesterday outlined weeks of process that will then lead to months of litigation time and money that government should spend managing covid, guarding against the delta variant, reopening upstate, fighting gun violence, and saving new york city all that time would be wasted. >> so he says he loves the state. the best way to show his love is to step aside. new york will get its first female governor in kathy hochul,
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the lieutenant governor who has been on cuomo's team since 2014. of course the resignation may avoid more airinging of dirty laundry by the state assembly in impeachment efforts, but we know a criminal investigation is under way in albany county and the governor's resignation shouldn't have an impact on that, eamon. >> we'll see the first female governor here in kathy hochul. what has she had to say about all of this? have we heard from her today or over the course of the past week >> yeah, it's a great question she released a statement very quickly after the governor spoke and she says it is the right thing to do and in the best interests of new yorkers quote, as someone who has served at all levels of government and is next in the line of succession, i am prepared to lead as new york state's 57th governor she had distanced herself from the governor she has not been seen a lot with him in public. and after the attorney general,
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letitia james, released her report that outlined all these various ways that cuomo and his team i should say, and his team were guilty of not only this pervasive culture of sexual harassment, a toxic bullying culture, but they said also ha committed illegally an attempt to retaliate those who came forward, kathy hochul released a statement decrying that behavior and denouncing it there were some reports that she had begun to gather a team around her to consider a run for governor and to make her way into preparation for this particular role regardless of what the governor did. but now he steps aside she will remain the governor until 2022, the midterms there >> contessa, thank you so much kathy hochul, next in line for s succession let's turn now to the other big developing story at this
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hour the senate passing the trillion dollar bipartisan infrastructure bill ylan mui is in washington with the latest on that big package. >> reporter: well, that bipartisan infrastructure bill has finally passed the senate after months of negotiations and several near-death experiences in the end the results were clear. the bill passed 69-30. 19 republicans supported it and vice president kamala harris presided over the final vote now, both parties are calling this a historic investment not just in roads and bridges but also in broadband, transit and water as well. according to an analysis by moody's, the job would create 650,000 jobs and boost gdp to 2.9% in 2023 moody's is forecasting 2% growth without the exact of the bill. now, the next step is for the house to take up this legislation. members of the bipartisan
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problem solvers caucus are urging speaker nancy pelosi to bring it up asap in a letter to leadership they say after years of waiting, we cannot afford unnecessary delays to finally deliver on a physical infrastructure package but pelosi hassaid she will no start work until the senate sends over the $3.5 trillion spending package that includes the rest of democrats' agenda. in just the past few minutes, the senate did vote to start debate on it the tally for that was 50-49, so right along party lines. >> a squeaker there. thanks so much stay right there, we'll come back after we talk about which stocks now stand to benefit from this infrastructure bill our next guest says new spending is a big boost for some specific companies. the smaller the industry, the larger the impact will be with names like caterpillar, cisco, blink and chargepoint among those that could benefit the most let's bring in dan clifton
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dan, thank you so much for being here i've been watching bob pisani all morning on our air and he says this was priced into the market, right? the market knew this infrastructure bill was coming, we knew it had the votes to pass, now it passes. but you are saying there are still specific companies that can benefit from all that spending how is that possible >> i wouldn't disagree with the analysis this is all priced in you had a big rise in these stocks as the democrats won the georgia election in january. they went up for about two months and have really been underperforming since the month of march because as you know, and you've covered it so well, there's been a lot of wrangling about whether this bill is going to pass, how it's tied to the larger bill. now you're just starting to see the momentum building for the stocks i tell you, eamon, we've done a infrastructure bill in 2009, 2012, 2015, and you usually get a pop around the bill passing and then a pop as investors begin to reprice the earnings impact as that new spending
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starts to take effect. that is a very critical point because if you look at the stocks that are levered up for this spending, they usually outperform over the next six to eight months after the bill passes into law. we're really just at the beginning of that process itself as you know, this bill is larger than our traditional infrastructure bill that we did in 2012 and 2015 so this is likely going to have a bigger impact. it's really going to have a bigger impact in some of these smaller industries. >> give us some names, dan who do you think is really going to benefit here? >> sure. if you go through highways, we like martin marietta, mlm. that's a traditional highway spend. as you get deeper into the bill, you've got water we're going to do $55 billion of incremental spending on walter ticker symbol like aqua is a good name to think would benefit from that, as well as muller water products as we think about
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lead pipes then you think about the charging stations that are in here for electric vehicles, chargepoint, link, ev go, they're going to be beneficiaries of this. then you think about electric buses. a company like fuel cell technology or plug he was on cnbc yesterday, the ceo of that company, talking about how big this bill is going to be for them and then you've got broadband. you mentioned cisco before maybe the cable providers, maybe the tower aoperators that do 5g i think there will be enough of this money to go around. the state highway transportation officials are thinking, wow, we're going to get all this money if the bill passes we may be another month or two away from that bill passing but this is a pretty historic investment for the companies that are going to benefit from this new spending. >> dan, how do you look at this differentially across the different sectors? you're talking about traditional highways being built and electric charging stations and
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whatnot. do you see a competitive advantage for one sector over the other? does electric benefit more than the cement industry? who's the biggest winner here? >> i think highway, cement names, the traditional highway infrastructure names i think they're going to benefit look at the way steel stocks have been performing cleveland cliffs and new core steel. the market is starting to price in that increased demand for them they're still going to benefit i don't want to take anything away from them but we're going to do something new this time. we're going to do grid spending and upgrade the u.s. electrical grid to incorporate a lot of this electrification so companies like eaton will be a beneficiary of that or a company like quantus services. that is new spending that's why we think they're probably going to be a larger beneficiary than, say, the
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traditional construction engineering names that usually benefit around a highway infrastructure bill. >> a lot of names there. they're aingrguing this money is not yet priced in. dan, thank you very much. my next guest was a key negotiator in the room let's welcome in senator angus king from maine and welcome back ylan mui senator, thanks for being here fascinated to get your insights on this. ylan mui has been covering all of this on capitol hill and i know she has a question for you. >> sure. go ahead, ylan. >> thank you, senator king i was hoping that you could help us dive into some of the substance of this bill because we've talked a lot about the trillion dollars that's going to be spent we've talked about the sectors, the wide variety of sectors that are going to be seeing some of that money flow. how long do you think before we see an economic impact from all of this money? do you think it's something that's going to be short term, felt immediately, or are you looking at this as a longer term
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investment >> i think it's a longer term investment it's important to realize the trillion dollars people are talking about is over five years. i think it will be accelerating as the bill is implemented over the next couple of years but i want to go back to one of the comments earlier when you're talking about a 0.6 improvement in gdp just because of this bill, that's a big deal in itself. that's productivity. that's an advance of the entire economy. this is a huge deal. this is really the biggest infrastructure, hard infrastructure project since the interstate highway system in the '50s the piece that i've been most involved with is broadband we can talk about that, but that's transformational, particularly in rural areas. >> i do want to talk about that because as this takes time to sort of see through the economy and for states and local governments to get some of this money, in the broadband piece in particular, students are going back to school and so many of them still do not have access to
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the internet will this plan have enough funding to guarantee that every american really does have the opportunity to connect to broadband? >> we're pretty close to that point. yeah, it's hard to tell, but the estimates i've heard are $50 billion nationwide should do it, should connect everyone. and between this bill plus the bill that was passed in march that had $10 billion in it, we're above that number. so i can't say it's going to happen tomorrow or next week you know, this is a major infrastructure investment and a major construction project but yeah, that's the idea is to connect everyone, whether it's seniors for telehealth, students for connecting to school or just able to do their homework in a rural area, and finally, i think this is transformational for rural areas and small towns because people will be able to work from home they'll be able to work for any company in the country remotely,
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which they couldn't do without a decent connection in these rural areas, whether it's maine, arkansas, oklahoma or montana. this is, i think, the most transformational piece of this bill i view the broadband piece as the equivalent of the interstate highway investment in the '50s >> well, the employers might have something to say about whether or not they can work anywhere around the country and we'll talk about that aspect of this debate a little bit later in this broadcast. but senator king, so much of this debate on the 30,000 foot level of how much has been spent. there's some big numbers here. i wonder where the rubber meets the road in your state of maine, what's the biggest project that you think is actually going to get funded as a result of this bill and what's that going to mean for the economy in your state? >> well, i can give you a quick breakdown. it's about $1.2 billion to maine for highways, $225 million for bridges, and then $300 million for broadband. so that's the breakdown. how is that going to affect the employment and productivity?
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i don't think there's much doubt that it will infrastructure investments are what drives the underlying economy. your economists will confirm that and whether it's more efficient transportation, whether it's transit, broadband, and then of course there are pieces for ev deployment, increasing the capacity of the grid so we can move more in the way of renewables, all that's going to have a direct -- i can't say that factory x will move to westbrook because of this bill, but i think we'll see overall growth of our economy in maine and those are the people that hired me so that's why i'm so happy about this. >> we'll still have to see this pass in the house of representatives and there's some weirdness over there, because you've got moderate democrats saying let's vote on this right away speaker of the house nancy pelosi says, you know what, i don't want to vote on this bill until we see the even bigger so-called soft or human infrastructure bill of 3 plus trillion passed by the senate and come over to the house
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she wants to do both of those as a package deal and putting pressure on you guys in the senate to get that deal done too and you started that process now. by question to you, though, is do you think nancy pelosi is bluffing about that? ultimately if she can only get this bill that you just passed this morning, do you think she and the house democrats will take it? >> you know, i think that's a judgment that she's going to have to make i don't want to second guess her. my understanding is she's made these statements about linking the two, but there's some escape hatches. my own view is this bill itself is such a big deal and so important for the country, i'd like to get it to the president's desk as soon as possible but the other piece is important too. remember, i talked about interstate highway system in the '50s the other big economic driver of the '50s, '60s and '70s was the gi bill. the next bill that we're talking about is similar to that in terms of supporting people in community colleges, pre-k,
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education. that's the other half of this. so i understand where the speaker is coming from on the other hand, this is such a good deal, i don't like things lying around where they can languish i'd like to see this one get to the president's desk. >> so some escape hatches in what the speaker of the house is saying, but i can see why you don't want to necessarily get crosswise with her thank you so much, senator angus king really appreciate you being here and sharing your insight and ylan mui for your reporting as well. coming up, the largest cannabis company in the country. we'll speak with the executive chairman about the business, earnings, the future, and where we're going to legalize it at the national level. plus coinbase is reporting earnings after the bell. we'll tell you what to expect and look at the potential regulatory threats from capitol hill "the exchange" is back in a moment don't go any wrchl
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senate last month is it time to bet on the cannabis growth story in the future? joining me now is boris jordan, the executive chairman of curaleaf boris, thanks so much for being here really appreciate your time and expertise. i tell you what, i spent a couple of years ago a full day in a marijuana dispensary where they were talking about how this business is going to grow over time it was a powerful story several years ago in terms of the growth of this industry, but the big problem they had in that dispensary that i was at is how to handle the cash because the banks wouldn't take their money. the federal ban kept in place this awkward situation where states say it's legal, but at the federal level you can't access the banking system. is that a problem for you? and how do you see yourself resolving that in years to come? >> good to be here i think it's a problem for everyone in the industry the fact that canadian marijuana
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companies, european marijuana companies can bank in the u.s., trade in our exchanges but homegrown businesses like curaleaf cannot. it's the most outrageous thing i've ever seen in business 2for 30 years curaleaf being the largest company in the world does have access to banking but we bank at very small mom and pop banks around the country the large money center banks are not allowed to bank our sector we're not allowed to trade on u.s. exchanges a lot of investors in the u.s. cannot access our share price. we trade in canada and you mentioned our share price is down 30%. i think that's a disappointment to democrats and republicans because this is a very bipartisan issue that they have not been able to pass safe banking. one talks about social justice issues and getting a lot of these communities that have been very harmed by the war on drugs, which we support tremendously. how can they open businesses how can they do it, they can't
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even open a bank account, if they can't get basic banking services or loans. >> so what are you going to do about that in our notes to our producer you see new jersey, connecticut an new york state as an $8 billion opportunity going forward. that's a lot of money. if you have to ship that around in trucks, physical pallets of cash driving up and down i-95 in new jersey, you're talking about a huge opportunity for the sopranos crime family or other bad guys to go after that money. it's not safe. >> that's why the law is called the safe banking act it does have support but at the moment senator schumer has made a decision that he wants to get a more comprehensive bill, which we also support obviously, and he wants to try to get interstate commerce, he wants to get cannabis removed from the list of prohibited drugs he wants to get a lot of different things done. well, we think that there should
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be a first step. the first step is to make it safe for those companies and the people that work curaleaf has 6,000 employees the industry has hired almost 350,000 employees in the last three years. a lot of our employees can't open bank accounts for basic banking services so this is not only acting big companies but everyday americans who are trying to get access to banking services that work for this very big industry so we are hopeful that the government will move in the direction of approving the safe banking act. >> i want to ask you a little bit about covid because just about every ceo we have on, we're asking about the delta variant and how the spike in cases is impacting their business, their ability to reopen but you're in an unusual position because you sell a product that can be bad, unhealthy for the lungs. i'm wondering how your customers have responded to this increase in cases around the country and
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whether or not there are health concerns about lungs and covid and marijuana? >> so anything one smokes is not necessarily a good thing but the difference between tobacco and cannabis is that cannabis doesn't have any kind of cancer or side effects or things that can significantly damage one's health. but generally speaking, smoking is not a good thing. most of the products we sell or at least 50% are nonsmoking. whether it's edibles on tinctures or other products. during covid we've had a boom in the industry because particularly in the older communities people have come to cannabis to deal with anxiety, to deal with sleep and other issues where they don't want to turn to pharmaceutical drugs like opiates or other drugs which have very big synthetic compositions to it so cannabis is a go-to product for a lot of people in the community to deal with those issues. >> that's something that i
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didn't think i'd learn, that covid has been good for the cannabis business. thank you very much, boris jordan, for joining us. coming up, hacking main street a new survey shows how prepared small businesses are for a cyberattack and the results may surprise you. plus our out of stock series continues with a closer look at the issues facing the global supply chain today we're talking about the fallout from the foam shortage yes, a form shortage "the exchange" is coming right ckft this. you don't want to miss this very soft segment e. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit ♪
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welcome back to "the exchange." let's get a quick check on the markets with dom chu. >> so we have record highs so far. for the dow industrials we'll put a yellow star, a gold star, and the s&p 500. both of them hit earlier in the session. we're up a half percent for the dow industrials. 4439 the last trade for the s&p and the nasdaq off about one third, 58 points to the downside now look at 10-year treasury note yields. we continue to tick higher, just a hair below 1.35% as a result many of the banks are in focus and citigroup and bank of america, two larger money center banks up 2% and 3% so yes, we got just about as low as 1.13% on that 10-year
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now over to kristineeakrist. >> we've got reaction streaming into new york governor andrew cuomo's decision to resign new york city mayor bill de blasio said it was past time for him to step down karen hinton said cuomo's fall was entirely of his own making. a new poll shows more than 70% of americans have high trust in their doctors, nurses and pharmacists. the trust could become important in efforts to convince more people to get vaccinated on the news you'll hear from nurses fighting big covid outbreaks and how some patients are expressing their regret for not getting their shots. that's tonight at 7:00 p.m. eastern. in thailand, police and demonstrators clashing people are protesting slow vaccination efforts and a lack of movement towards political reform there's the news i'll send it back to you. >> kristina, thanks so much.
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coming up, can coinbase deliver for investors? the buy now, pay later debt dilemma. if you work from home, should you make less google thinks so that's a cinupllomg in rampid fire we're back in two minutes, don't go anywhere. and one we explore. one that's been paved and one that's forever wild. but freedom means you don't have to choose just one adventure. you get both. introducing the wildly civilized all-new 3-row jeep grand cherokee l the personal loan from sofi helped me consolidate
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welcome back let's catch you up on a few stories that should be on your radar. it's time for rapid fire here to help break down the headlines, bob pi sauny, kate rooney and todd gordon first, coinbase is set to report after the bell and the paris high the stock is down about 4% going into the print wall street is expecting strong results driven by bitcoin's meteoric rise to a all-time high but analysts are watching for that guidance. what is on the radar here? >> this is only coinbase's second quarterly report as a public company so it's pretty new to see some of these results. it's interesting to see the correlation between bitcoin trading and volatility and coinbase's performance the bar is pretty high coinbase tripled revenue in the
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first quarter and we are looking at bitcoin it topped 60,000 or got around that level in the second quarter so analysts are assuming, yes, it was still a good quarter. that 60,000 level picking up the slack for a quieter period at the end of the quarter bitcoin had been stuck at that 30,000 level until this week they're also looking for a breakdown of institutional versus retail trading. you can often guess some of the trading volume without seeing the actual results from a company like coinbase. what they're really looking for and analysts cannot see is how much of that is retail traders versus some of the bigger wall street firms the other big one is the percentage of global assets that coinbase has it was about 11% in the first quarter in terms of how much of the global crypto market cap is actually under custody at coinbase any decrease in that could show a little bit more competition. we've got the likes of paypal, venmo, robinhood also in this
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space so competition is a big theme going into this. >> todd, we've got a couple of hours before we get the actual number how do you trade this through the rest of the afternoon? >> eamon, i'm not trading it i don't own it i was here on cnbc on ipo day and i was bearish. we've sold off down to 200 i'm not bearish on the space, i'm bearish on the company and specifically the spread. i'm coming from the old fx days. if you can remember way back when the foreign exchange platforms came out and the bid/ask spreads were so wide you could drive a truck through them this is kind of the same situation. i put a post on twitter a while back i was doing a $10,000 crypto transaction and it cost 3% to fill they would sell you below the bid and put a $150 cost on top of that. traders aren't going to stand for that there's just way too much competition out there. and if you look at coin market
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cap, this judges the exchanges that do the revenue. the most volume in a 24-hour basis right now, coinbase is only 15th on that global list as kate just said so there's too much competition, spreads are too wide it's a business that invites a lot of competition i like the crypto space, i hold crypto in my portfolio one upside main i see opportunities in decentralized finance partnerships which is a rapidly growing sector in cryptos but there's way too many opportunities for people to come and squeeze that bid/ask spread. >> let's ask bob what are they saying over there? >> in general opinions are split on bitcoin some are big fans, some are not. i'm not a big fan of bitcoin but i am of blockchain and decentralized finance so i'm rooting for coinbase on that front. there's two obvious risks here one is trading they get most of their money from trading if trading drops off, they are going to have a problem. i know they're trying to spread out their revenue base, but that's a big issue the second is i think people are
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greatly underestimating the regulatory risk. there is a whole world of new regulations coming down not only on bitcoin but initial coin offerings. gensler has made it clear he thinks most initial coin offerings are indeed securities and there's a lot of unregistered securities out there essentially. so i think you're going to hear a lot from the s.e.c. in the next several months that's going to impact coinbase. next topic, the booming buy now, pay later trend could create a credit conundrum. last year the volume e-commerce payments totaled $19 billion, more than doubling the amount spent back in 1920 but fitch ratings is ringing an alarm bell about the sector saying its debt performance reporting is opaque, quote unquote, and could increase default risks for consumers and bnpl players the question for you, kate, where do we see all this play out? i worry as i look at this
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industry about people getting taken advantage of and getting in situations they don't know how to get out of. >> absolutely. one of the things analysts worry biz stacking debt. the idea of using your credit card to pay for something like an installment loan. in a lot of cases they don't necessarily take fico score, for example, and it might not be the traditional credit reporting fintechs would argue that's often more reliable and you would have your cash, your inflows as a consumer and it could misrepresent some consumers. that's definitely the case in some cases, it might not accurately represent how much risk somebody is taking on and they're everywhere, these buy now, pay later things are ubiquitous you see it for things in the low hundred dollars versus a pe peloton, for example it's easy for people to get caught up and not realize how many of these subscription type buy now, pay later services are out there. every time one of these is
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announced, analysts are worried about it. >> todd, you were bearish on topic one. are you bullish on topic two >> i'm near term bullish, eamon, long term conscious. square and paypal and all moving in it reduces reliance on the finicky credit score system and allows inexperienced consumers to avoid compounding interest on credit cards they don't understand and gives them access to buying goods. but as kate said, the issue is they're not pulling credit scores what happens is those inexperienced consumers will stack, they'll pay their installment with their credit card and we're right back to where we started look at some stats, u.s. household consumer debt as a percent of disposable income just hit a new low of 4.77%. i think that's the second lowest since '92 when it was 4.6, 1992. credit card debt has hit a new high the u.s. credit card debt was at
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$928 billion it's backed off to $787 billion, but still what that means, those two stats, is people are not servicing the debt as that first stat is dropping and consumer debt is going up i don't see how unexperienced young consumers are going to have the financial maturity to service that debt properly and not compound the issue it's true we are a consumer-driven economy, but for young people trying to financially get their house in order, i don't see how this ends up well and does them any favors. >> thank you for that. let's move to topic three real quick. there's an outrage factor with this one, bob. as the debate over remote work continues, google is reportedly making a move that's raising some eyebrows, according to reuters. the company is rolling out an internal pay calculator. employee can say see how their choice to work from home and move away from the office can affect their wages in practice, this calculator may unfairly penalize workers who just happen to have long commutes reuters is reporting some dramatic pay cuts, some as high
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as 25%, could be in the offing here bob, traditionally we thought that the salary that you get is pay for the job you do not where you live is this the right way to go and is this what we're going to see from companies in the future >> this argument puzzles me, eamon. pay has never been location agnostic you traditionally would get paid more to work in new york than working in arkansas because the cost of living is higher and now -- >> but pay hasn't been expense agnostic if you use to have four children and have a lot of expenses, like some people here in this room, then that's one thing. if you choose to have no children and low expenses, that's another thing the company doesn't differentiate based on what your expenses are, do they, bob >> not expenses, but they will pay you more if you're living in new york city than if you're living in arkansas, for example. now the companies have pointed this out and there's a bit of a brouhaha because some people have decided to live elsewhere and it is cheaper to live somewhere else, so they might be
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getting 15% savings from living in arkansas and they want to keep that perk and that's the point, eamon they don't want to lose that value. they figured out how to do a little better and they want to keep it. this is a perfectly reasonable discussion to have should companies be forced to pay equally everybody no matter where you are, and maybe that's what should be happening but that's not historically what has been happening i'm just pointing out that you can do that, let's have that debate, but don't act like it's an outrage if google points out that people get paid differently in different parts of the country -- >> just when the workers finally had to get a little something for themselves, right? let's go to you, todd. it is a fee fight between domino's and food delivery apps. they are giving away $50 million of free food to random customers in a program called surprise freeze it's an effort to take on surprise fees that domino's says third-party delivery platforms like doordash and uber eats
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charge users this az the ceo admitted that the biggest competition over the long term for us in the delivery is that third-partying agater channel. todd, will you be ordering from domino's as a result of this and what do you think about getting the middle man out of this pizza supply chain business >> oh, i'm kind of torn on this. i love the convenience of doordash and other food deliveries right there and an aggregator here in saratoga springs we have a lot of good local restaurants. i think it's easy for these companies to come in and bring their own driver workforce and reduce the fees. you really look at -- it's like that coinbase discussion you look at what you're really paying for for someone to bring your food to you it's space that invites competition. there's plenty of people out there who are embracing the uber and lyft lifestyle they don't mind working after hours with the time they have at home
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i think it's a business individual restaurants can compete against well so i like it domino's, it's unbelievable what this company has done so i think they're kind of going out ahead. i like where they're headed with this. >> pizza basically sells itself, right? thanks to all of you bob pisani, kate rooney and todd gordon. markets are heading higher today. smile direct investors not smiling today. all the big movers are coming up next what happens when we welcome change? we can transform our workforce overnight out of convenience, or necessity. we can explore uncharted waters, and not only make new discoveries, but get there faster, with better outcomes. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change-- meeting them where they are, and getting them where they want to be. faster. vmware. welcome change.
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in the race to succeed, does somebody always have to fail? we've got to start lifting each other up. and give everybody a fair shot. because when that happens, we've all made it. ♪ welcome back to "the exchange." markets are mixed with the dow and s&p hitting all-time highs earlier in the day the nasdaq losing some of its early morning gains here here are some of the movers at this hour. the steel and commodity stocks seeing a nice move higher on the back of the infrastructure bill passage in the senate. nucor, steel dynamics among the
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biggest winners. smile direct plunging after an april cyberattack and lingering effects of the pandemic caused it to fall short of earnings expectations shares of fiskar soaring with a price of $40 that's a 166% upside adam jonas expects it to start production of its vehicles by its previous target unlike some competitors who have delayed their timelines. coming up, the next installment in our out of stock series on things you just can't seem to find enough of right now, even though you may be sitting on it. foam for couch cushions is in short supply, believe it or not. e ceo of huntsman joins us right after this break
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hey, everybody, welcome back to "the exchange." time for out of stock series on products you just can't find today we're talking about foam it is used in everything from cars to insulation when it's in short supply, the effects ripple through supply chains everywhere. following severe winter weather in february, many chemical production facilities shut down causing delays in auto manufacturing, furniture
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production and home building joining me now is one of the largest chemical manufactures of foam, peter huntsman peter, thanks for being here the jokes almost write themselves here. everybody spends a year and a half working from home, sitting on the couch they're going to wear out the foam and need more insulation. tell me what's really going on in the supply chain of yours. >> first of all, thank you very much for having me on. i believe the supply chain, i believe, before the pandemic was quite tight. it's very well balanced. so anything from the closure of the l.a. port to a tight supply of raw materials to a facility that is producing major raw materials being slowed down because they can't get enough workers, any one of these things will have a supply chain running at 98% efficiency or effectiveness, any one of these things is going to cause a constraint on global trade that's largely what we're seeing right now. >> is that something -- >> we're seeing a little light
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at the end of the tunnel but not much. >> is that something that you guys are seeing and the rest of corporate america in general is seeing everybody went to this just in time streamlined model where you don't keep anything in stock for any length of time because you want the point of sale be as quick as possible. did we learn during the course of the pandemic that we moved too far in that direction? do you think we're going to see a permanent change in terms of just in time as we come out the back end of this >> perhaps we will, but these will be multi-year fixes you don't fix the congestion in the port of los angeles overnight. you don't relocate manufacturing facilities like ours that will take five to seven years to build. we're already running at capacity before covid. now you look at things like the green new deal and this infrastructure spending where there's an enormous amount of
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demand that will serve as something that will cause some congestion but at the same time tremendous opportunity as well. >> how much problem is the demand side? you talked about infrastructure and the spend side increase the demand a little bit but aren't we going to see a demand slowdown on the pback side of te pandemic as some of these situations resolve themselves and the burst of consumer spending begins to fade away >> i think in certain areas like home furniture, which isn't a big market for us. automotive, we do all the seating for tesla coming out of china and a lot of european and automotive manufacturers here in north america. but our biggest single area for growth for us is the spray foam. people take that cheap pink stuff out of their attics and replace it with polyurethane spray foam with much better energy-saving characteristics. we're seeing 10% to 15% growth
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in this area of spray foam which is largely the same chemistry that's going into home furniture. >> peter, we're going to have to ending it there. thanks so much to you and best of luck managing all of this thanks to peter huntsman here. there may be no greater threat to businesses than the threat of a cyberattack but a shockingly low number of small business owners have a plan in case of an attack. that's cinupexomg nt.
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welcome back one of the biggest issues facing businesses of all sizes is the growth of cyberattacks, so how prepared are businesses for this growing threat well, small business owners are not really worrying about the increasing risk of all this. kate, you're here to tell us about what's going on here with these small business folks they're in a real world of hurt here, aren't they? >> yeah, eamon these small business owners are not really worrying too much it seems right now but the increasing risk of the cybersecurity threats to their business but they should be because they are low-hanging fruit for cyber criminals. more than half of small businesses in our cnbc poll said they were not concerned about their business being a victim of a cyberattack in the next 12
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months less than a quarter say that they're spending more on cybersecurity than they were just a year ago. they may also have false confidence here. 59% of small business owners said they were confident that they would be able to resolve an attack on their business quickly, yet only 28% had a set plan established to respond to such an attack just over a quarter of business owners said they had cybersecurity insurance. interestingly enough, younger small business owners under the age of 35 were more likely to both say they had cyber insurance and were increasing investment in cybersecurity compared to a year ago now, overall confidence held steady at 45 out of 100. right now 66% of all owners said they can survive more than a year under current business conditions more than a third say business conditions are good. that is slightly higher than last quarter back to you. >> you don't want to miss cnbc's small business playbook tomorrow featuring a star-studded lineup
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to give you the knowledge to make the most of the recovery. you can attending at that does it for "the exchange." i'm headed back to d.c., but "power lunch" starts right now so i'll turn it over to rahel solomon and tyler mattson. we are tracking the developments out of washington and albany legislation in washington, resignation in albany. the company at the center of the economic rebound feeling the push/pull of strong demand, raw material delays and rising shipping costs. also the interim ceo of fanduel is here. we'll ask her about the company's next big bet, the unusual partnership with its biggest competitor and its expanding u.s. market share. our powerhouse road trip let's go to austin, texas, where homes are selling at record prices one of the hottest places in the country. and i'm not talking about the temperature.
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